Interested in Infrastructure? Consider the NFRA ETF

The recent passage of the U.S. infrastructure plan through the Senate is giving infrastructure funds a lot to cheer about—including the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA).

NFRA is up close to 9% this year, buoyed by the infrastructure plan’s introduction earlier in 2021. Stretch that performance out to one year, and the fund is up close to 14%.

“Every infrastructure fund with a three-year track record has seen double-digit gains over the period with the best one returning more than 40%,” an Investment Centre article noted. “In the US, the Bipartisan Infrastructure Deal was passed this month, described as a once-in-a-generation investment in the US infrastructure, and would include US$550 billion ($749.1 billion) in federal investments in America’s infrastructure. This followed a number of other initiatives worldwide signalling increased infrastructure spend earlier to accelerate the recovery from COVID-19.”

Per its fund description, NFRA seeks investment results that generally correspond to the price and yield performance, before fees and expenses, of the STOXX® Global Broad Infrastructure Index. The index reflects the performance of a selection of companies that, in aggregate, offer broad exposure to publicly traded developed- and emerging-market infrastructure companies, including U.S. companies, as defined by STOXX Ltd. pursuant to its index methodology.

Clearing the House Hurdle

The next challenge will be clearing the House of Representatives, which according to the New York Times, won’t be an easy task.

“The measure faces a potentially rocky and time-consuming path in the House, where Speaker Nancy Pelosi and a majority of the nearly 100-member Progressive Caucus have said they will not vote on it unless and until the Senate passes a separate, even more ambitious $3.5 trillion social policy bill this fall. That could put the infrastructure bill on hold for weeks, if not months,” the New York Times article said.

“The legislation is, no doubt, substantial on its own,” the article added. “It would be the largest infusion of federal investment into infrastructure projects in more than a decade, touching nearly every facet of the American economy and fortifying the nation’s response to the warming of the planet.”

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